Originally posted by towkay
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The profits that Au8 make and can be either redeployed in to the business or distributed to shareholders will be interesting as the JV in New Zealand appears to have other plans and sees AU8 merely as an interim outlet to the Sydney based chinese community that wants to send product back home. This gives them a free kick for their brand in China before they launch their own direct strategy and will leave AU8 wanting in the future."
U think they r so naive in negotiating terms of contracts! LOL!!
See latest AU8 press release. (23/11/2018)
"> AuMake currently assessing
attractive commercial terms proposed by other milk formula manufacturers for the development of new owned brand products. "
Further, their set up in Xiamen, China is having a strong grip on the ins and outs of AU8 operations in China.
Blind me!! These Chinese, they are smart!! LOL!!clear.png
You probably need to look at who owns the JV, 60% owner is a Hong Kong operation. Secondly I am not sure what "milk formula manufacturers" means. They can get plenty of SMP, WMP or even AMF from most milk processors with drying capability if not already committed elsewhere or even the GDT if they so wish but value-added milk powder products are not so easy to secure in the current market.
I don't question how smart these chinese are, I merely test the company strategy, the business model and its robustness firstly and secondly its viability as an ASX listed entity.